Greek Bank Deposits Fell in June on Euro Exit Concern

July 26 (Bloomberg) -- Greek bank deposits by businesses
and households dropped 6.8 billion euros ($8.4 billion), or 4.3
percent, in June as two elections in six weeks raised concern
the country may leave the euro area.

Deposits fell to 150.6 billion euros in June from 157.4
billion euros the previous month, according to a statement
released by the Athens-based Bank of Greece on its website
today. Deposits have dropped 14 percent in the first six months
of the year from 174.2 billion euros in December.

Prime Minister Antonis Samaras formed a coalition
government after the country’s second vote June 17, pledging to
renegotiate the terms of a European Union and International
Monetary Fund bailout while keeping the country in the euro.

“Although the outlook is less fragile compared to that
prevailing in May and June upcoming political and macro
developments will drive deposit evolution in the coming months,”
Manos Giakoumis, a research director for Euroxx Securities SA in
Athens, said in an e-mailed note.

Bank of Greece Governor George Provopoulos said earlier
this month there’s been a “satisfactory” inflow of bank
deposits since the country’s rerun election. Bank deposits rose
by 10 billion euros after the June election, Capital.gr reported
today, citing unnamed bank officials. As much as 200 million
euros is returning to the banking system every day, the Athens-based news website said.